30 Years of
Mortgage Experience

NMLS# 3700

215-396-8101 or 877-214-9417

30 Years of
Mortgage Experience

NMLS# 3700

215-396-8101 or 877-214-9417

Wednesday, December 13, 2017
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Mortgage Applications

 

 

 

Mortgage Applications

 

 

 

Commercial LTV Ratio

The loan-to-value ratio (LTV) is calculated by dividing the total amount of all mortgages, proposed and/or existing, on the property by the fair market value of the property, usually as established by an appraisal. Typically in real estate lending the practice is to use the lesser of the purchase price or the appraised value to determine the LTV. The commercial lender may use additional factors in determining the “fair market value” of the property based on its own experience and knowledge of the marketplace. Be sure to discuss this matter with the commercial lender of your choice.